Fitch Ratings recently affirmed the obligations and issuer default rating for City Utilities of Springfield as ‘AA’ and also affirms the ‘AA’ rating on outstanding revenue bonds.
Fitch also reported the rating outlook for the Missouri public power utility as Stable.
Key drivers for this report and rating include strong revenue defensibility, low operating risk with manageable capital needs, and low leverage supports ample financial flexibility, City Utilities said.
In the report, released on December 17, Fitch said the ‘AA’ rating reflects City Utilities “very low net leverage in the context of its overall risk profile, including ample rate flexibility, a captive customer base, a relatively strong service area, a very low electric system operating cost burden supported by a reasonably diverse power supply portfolio, and manageable capital requirements.”
The rating agency also said that City Utilities' strong financial profile and ample liquidity “position it well to withstand a moderate stress scenario, which shows the preservation of strong financial metrics through a five-year horizon.